The active participants of the Forex market don’t give any importance to the brokers. They thought the trading strategy is the most important thing. Though trading strategy plays a great role the selecting best broker should be the priority. You might even get scammed by trading the market with an unregulated broker. When it comes to the trading platform, you are going to get the worst price feed. The unregulated and scam broker will try their best so that you don’t find any good trades. So, how can we find the best online Forex brokers? Well, there are many things you need to assess but you will highlight the most important ones.
Commission
The commission fee can vary greatly between different brokers, for example, XM Forex broker offers low fees for new traders and reduces the costs for larger firms and high-volume traders. It’s important to remember that paying a broker for services helps you access tools and resources for advanced trading techniques in addition to standard products such as stocks, ETFs, and mutual funds
Very few traders think about the commission set by the broker. They think they can cover up the commission with few trades. But if you scalp the market, the commission is going to be a major issue. If you end by with 3 pips spread in the EURUSD pair, there is no way you are trading with a high-end broker. The high-end broker always thrives to offer the best possible price feed to their clients. You can expect to get less than 1 pip spread in the EURUSD pair. Those who are thinking 3 pips is enough, they don’t know about the cross pairs spread. Spread might be more than 10 pips in the cross pairs when you chose a bad broker. So, think about the commission while choosing your first online Forex broker.
Leverage
Everyone assumes high leverage is offered by the high-end brokers. But if you look at the elite trader’s Forex trading account, you will notice that they are using very low leverage. Brokers like Saxo always offer realistic leverage to their clients. They don’t offer 1:2000 leverage. You may think such insane leverage can change your life since you will have more buying power. Most of the time, more buying results in overtrading. And the moment you start overtrading the market, you won’t think about the volume. Your lot size will gradually increase and you will eventually lose your capital.
Fees associated with the account
You must know about the fees associated with the account. Learn about the minimum deposit and withdrawal requirements. For instance, let’s say you are going to deposit $100 to trade Forex. The minimum deposit requirement might be $100 but the withdrawal fee might be as high $40. So, you should never trade with such a broker. Based on your initial deposit, you need to assess the fees and other charges associated with your trading account. If things suit your needs, open a real trading account to start trading the market.
Customer service
If you chose a broker, it must have great customer service. Without having great customer service, it’s really hard to say they are offering great service. Before you open an account talk to their customer service representatives and see how they respond to your queries. If thinks work, you can start trading with real money. But make sure you also read public feedbacks about their customer service team since it’s a great way to evaluate the quality of the broker. Stop taking things in a complicated way since it will not work. Follow the conservative method and try to find a good broker who has a proven track record.
Guidance from the experienced traders
You need to seek guidance from the experienced traders to become skilled at trading. If you trade the market with the low-end broker, you might not be able to make a profit. So, ask the professional traders about the best broker and they will give you a clear guideline to find the best broker. Things might challenge for the naïve traders but with some basic knowledge, they can find their desired broker and start trading the real market.
